Stores are changing to attract shoppers who like using technology and care about being ethical. They are using more online shopping and digital tools to make shopping easier online and in person. We will discuss the five essential changes shaping how stores work from 2023 to 2028.
- Exponential Growth in Online Shopping
Did you know that buying things online is getting super popular? Big stores like Amazon have made it easy for us to check prices, get things delivered quickly, and even see our recommendations on their apps or websites.
A research company called Custom Market Insights says that the China Online Shopping Market was estimated at USD 1400 billion in 2022 and is anticipated to reach around USD 2300 billion by 2030, growing at a CAGR of roughly 9% between 2023 and 2030 and The US Online Shopping Market was estimated at USD 850 billion in 2022 and is anticipated to reach around USD 1900 billion by 2032, growing at a CAGR of roughly 16% between 2023 and 2032.:
- More people are using their smartphones to buy things whenever they feel like it.
- Stores are making their websites fancier, with lots of cool things to choose from.
- Delivery systems are getting better, so they can handle many orders.
- Ads online are helping stores get more people to visit their websites.
Because of all these changes, according to Euromonitor International, online shopping might be responsible for more than half of all shopping growth by 2025. Stores that do not keep up with these online changes might not be as popular as those that are good at using technology.
- Transitioning Towards Omnichannel Retail
Big stores are adapting to the increasing number of people shopping online. They are creating their websites or joining big online markets like Amazon. But more than just having a website is required.
The brightest stores use both online and in-person shopping. This is called omnichannel.
Here are some things people want from omnichannel stores:
- Ordering products online and getting them delivered to their home or picking them up in a store.
- Being able to return things they bought online to a real store nearby.
- They use deals they find online when they are shopping in a store.
- Talking to store workers on the phone, chat, or video to get help buying things.
According to McKinsey & Company, many American shoppers now like omnichannel options, like ordering online and picking up in a store. Most of them say they will continue to want these options in the future.
So, stores need to make sure their online and in-person shopping work together well, or they might need to do better than stores that do.
- Using AI and Personalization in Retail
Stores need to reach many people and offer things that match each person’s interests. They do this by using big data, machine learning, and AI, which help stores to:
- Look at what people bought before to guess what they might want in the future.
- Send messages about new things or sales that fit each person’s interests.
- Let people try out things like makeup or furniture virtually before buying.
- Pay attention to things like the weather to suggest things that make sense for each person.
For example, a company called Stitch Fix uses AI to pick out clothes that fit each person’s size, style, and season. This makes shopping more fun and makes people want to keep shopping at that store.
By 2025, a research company called IDC thinks that most stores will use AI for things like personalized ads, guessing what people might buy, and having virtual helpers to talk to.
- Using Immersive Technologies in Retail
Stores are starting to use remarkable technologies like virtual reality (VR) and augmented reality (AR) to make shopping more fun. With AR, you can use your phone to see how things look in your home, just as IKEA does with its furniture app.
Experts say the retail AR app market could grow to $57 billion by 2030. And with VR, you can feel like you are in an actual store, which helps you decide what to buy.
Another study says VR retail apps could make $24 billion simultaneously. As more people use these technologies, stores mix them with other cool digital things like live streaming and social media to make shopping even better.
- Putting Sustainability First
Besides all the technical things, it is also essential for stores to think about being ethical and eco-friendly. Some clothing brands, like Patagonia, use recycled materials to make their clothes and try to reduce how much they harm the environment.
Other things stores are doing to be more green include:
- They should ensure they get materials responsibly, such as not using wood from endangered trees or animal skins from endangered animals.
- Using more recycled things for their packaging.
- Checking that the people who make their thing in other countries are treated fairly.
Conclusion:
Also, because more people care about the environment and like buying used things, online stores that sell used things are becoming more popular.
Experts say stores must start caring more about being eco-friendly and fair to people instead of occasionally doing small things. All these changes will shake up how stores compete in the next few years. The stores that notice these changes early and make significant changes will be the winners.